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Mentor Graphics Acquires the Flowmaster Group to Provide a Unique Combination of CFD Capabilities

WILSONVILLE, Ore., January 9, 2012—Mentor Graphics Corporation (NASDAQ: MENT), today announced that it has acquired the Flowmaster Group, a global leader in 1D Computational Fluid Dynamics (CFD) simulation software for system design. 1D CFD solutions allow for very rapid engineering design of complex fluid flow network systems like water-cooled electronic racks, automotive vehicle thermal management, and aerospace fuel systems. This acquisition consolidates the position of Mentor Graphics as the first EDA company to move into the adjacent Computer-Aided Engineering (CAE) mechanical analysis space.

The Flowmaster Group is a Dutch owned, UK-based international organization with over twenty years experience providing industry-leading, thermo-fluid systems simulation software to the aerospace, automotive, marine, oil and gas, power generation, process, rail and water industries. Flowmaster software is used by a wide range of engineering professionals to improve complex internal fluid systems from conceptual idea to finalized design. Flowmaster provides users with greater systems insight and foresight upfront of system development cycles significantly reducing the overall timescales involved.

The acquisition of Flowmaster complements the acquisition of Flomerics Limited by Mentor Graphics in 2008, the leading player in the general purpose, 3D multi-CAD embedded CFD and 3D electronics cooling thermal analysis sectors, and broadens the Mentor Graphics portfolio in the CFD space. The combination of the CFD software products and services from Mentor Graphics and Flowmaster, both targeted at engineers, designers and analysts, is expected to provide the most comprehensive set of upfront and concurrent CFD design tools available in the market today. The terms of the transaction were not disclosed.

"We are very excited about the technical expertise and industry leading solutions that Flowmaster adds to our mechanical analysis simulation capabilities," said Erich Buergel, general Manager, Mechanical Analysis Division, Mentor Graphics. "Both companies have world-class products in their respective sectors, a loyal set of customers and employees, and share a passion for pioneering fast design tools for engineers. This unique combination of solutions will allow us to meet the reliability, cost efficiencies, and time-to-market pressures of our respective user bases throughout the world, enhancing the quest for real-time engineering design solutions for a wide range of industries. We are impressed by the strong customer base and the existing relationships. We recognize the importance of a strong stable foundation which will be the platform for future innovations.”

"The acquisition by Mentor Graphics brings together two companies with market-leading pedigrees and a shared vision for design tools to provide the unique goal of real-time, 1D-3D CFD solutions and decision making” said Alan Berry, CEO of the Flowmaster Group. "Our two R&D teams and complementary industry strengths will accelerate our ability to deliver innovative simulation software technologies to our customers, thereby enhancing their product design and as a result their competitive advantage."

About Flowmaster Group Flowmaster Group is an international organization with over twenty years experience providing industry leading fluid systems simulation software to the aerospace, automotive, marine, oil and gas, power generation, process, rail and water industries. With its headquarters in the United Kingdom, the Flowmaster Group has offices in the USA, Germany and India. Flowmaster system simulation software enables design engineers and analysts to understand the complex internal flow and thermal effects within fluid systems at the concept stage and throughout the development process. Flowmaster provides users with a greater understanding of fluid systems much earlier, increasing quality and performance whilst shortening the development cycle. Flowmaster Ltd is certified to BS-EN-ISO 9001:2000 & TickIT www.Flowmaster.com.

About Mentor Graphics Mentor Graphics Corporation (NASDAQ: MENT) is a world leader in electronic hardware and software design solutions, providing products, consulting services and award-winning support for the world’s most successful electronic, semiconductor and systems companies. Established in 1981, the company reported revenues over the last 12 months of about $915 million. Corporate headquarters are located at 8005 S.W. Boeckman Road, Wilsonville, Oregon 97070-7777. World Wide Web site: http://www.mentor.com/.

(Mentor Graphics and Mentor are registered trademarks of Mentor Graphics Corporation. All other company or product names are the registered trademarks or trademarks of their respective owner.)